Do you know about - Money: Gold and Silver, or Paper and Plastic?
State Farm Claims! Again, for I know. Ready to share new things that are useful. You and your friends."Money" of any kind obviously represents the fruit of our labors, because we trade our labors to get it. Of course, most of us admittedly could not care less what form the money comes in, as long as we can spend it. However, when it comes to savings-or storing the "fruit" of our labors for hereafter consumption-its form admittedly does matter.
What I said. It is not outcome that the true about State Farm Claims. You check out this article for facts about a person want to know is State Farm Claims.How is Money: Gold and Silver, or Paper and Plastic?
The contemporary Two
There are only two choices of currency today. In fact, the same inquire faces us about money as it often does with regard to the containers of our groceries: Paper or plastic?
"Paper" money is the printed kind. We could even consist of today's common coins within this category, as they are used to make turn for the other. This is "physical" currency (though it is not real money). We can hold these currencies in our hands.
At one time, these currencies represented definite claims on real money-gold and silver. The government-issued coins that habitancy used in daily commerce were even made from these high-priced metals. Nevertheless, neither of these two facts are presently true.
There is an additional one inspiring form for contemporary currencies. The most common way our governments generate "money" today is digitally. Nearly 98% of most Western national currencies are merely computer-based. They can be "created" infinitely by central banks with a few keystrokes. We "spend" such digital currencies using our computers, payment cards, and debit cards. So I call this the "plastic" form of a currency.
So either we are talking "paper or plastic" we find that there is no real substance to any of today's currencies. In short: contemporary "money" is admittedly virtual, and not real.
The Historical Two
On the other hand, there are the historical monies: Gold and silver (and copper alloys for small change). More than 5,000 years of human history has proven these tangible forms of money to be true shop of value over time-and the theorize is quite simple.
Unlike contemporary paper and plastic types of money, gold and silver bullion are themselves the fruits of man else's work. These metals have intrinsic value because they are scarce and very labor intensive to produce. In other words, they are real. They have substance. habitancy have to work hard in order to find, refine, and then fabricate them into usable forms (e.g. Coins, bars, jewelry, etc.). Thus, they are true money because they are also marketable commodities in and of themselves.
That is why bullion has been trusted to reliably store value (i.e. The fruits of labor) for thousands of years. In fact, at assorted times and in assorted places, habitancy have dug up treasure caches that were hundreds and even thousands of years old. They have found to their delight that the gold and silver that they unearthed can admittedly buy More goods and services than when their former owners buried them.
In truth: No other earthly "money" can hold its value like these high-priced metals.
Inflation: An Unusual Phenomenon
Throughout all known monetary history, the bullion-based monetary systems were typically very stable. This created a situation where general "price inflation" was almost unheard of. The only exceptions were during times of natural disaster and war, or when governments reduced the size and/or lucidity of its high-priced metal coins.
Moreover, while labor rates typically remained stable over time, prices for goods typically declined due to technological developments and improvements in company practices. For example, according to historical data from the U.S. Census Bureau, from about the year 1810 A.D. (when the U.S. Dollar was backed by silver) to 1910 (when it was backed by gold) the U.S. Price index fell by about 40%. In other words, what cost in 1810 would have typically sold for about 60 cents in 1910.
Again, this savings was due generally to the mixture of the soundness of the monetary system, and the constant improvements of manufacturing and yield efficiency, and other advancements in business. It is not that the value of gold and silver rose, but rather that the prices of other things in relation to gold and silver fell. The improved efficiency that new technologies and yield methods brought to the effective segments of the cheaper (manufacturing, farming, etc.) in case,granted most of this price "discount."
Gold and silver naturally held their value. Consequently, those that stored their labors in gold and silver found that they could finally buy more products as, over time, the general prices dropped. Their cost of living fell over time, and thus, their accepted of living increased.
However, the next century was a distinct story entirely as the United States "money" greatly devalued from 1910 to 2010. Because of this, general price inflation became so widespread that habitancy today admittedly think that it is "normal."
Turn that around, however. Could a 100-year phenomenon truly be "normal" when carefully within the context of over 5,000-years of history? No. The "abnormal" conditions are those that we live in today.
In other words: We are supposed to be enjoying the same stable monetary systems-and corresponding cost of living decreases with accepted of living increases-that our forefathers enjoyed for several millennia before us.
Leaky shop of Value
So how bad has the U.S. Dollar declined? The numbers will tell the grim story. However, before I show them, let me encourage you to be of good cheer. I will give you some time-tested suggestions afterwards.
From 1910 to 1971, the U.S. Dollar was still technically on a gold standard. Initially, that meant that it was supposed to be "backed" by gold, and that habitancy could redeem paper dollars for gold at will. Then in 1933, President Roosevelt changed that with an unconstitutional menagerial Order #6102 that forbade U.S. Citizens from even Owning gold, much less being free to turn paper dollars at will.
With the habitancy deprived of their constitutional monetary rights, the U.S. Federal government was then free to be irresponsible with its fiscal policy. The central bankers were also delighted to gawk that they could now play games with the money supply, printing more "paper dollars" then they had gold with which to back it. International governments and banks could still redeem dollars for physical bullion from 1933 to 1971, though the U.S. Citizens could not. (This unconstitutional condition was partly reversed in 1974, however, and U.S. Citizens can now once again own and hold constitutional money.)
So what was the effect of all this? during the 1910 to 1971 time frame, the U.S. Dollar lost about 80% of its purchasing power value. Things that cost about in 1910 increased in price until they cost by 1971. Of course, wages did not rise as fast as the dollar's purchasing power declined, and this resulted in an effective cost of living increase.
Then came Nixon's 1971 unconstitutional decision to stop redeeming U.S. Dollars for gold within international trade. With the removal of the last remnants of its true money foundation, the U.S. Dollar plummeted an additional one 81% in its purchasing power by the late 2000s.
You read that right: It fell by an additional one 81%.
Then when the first phase of the economic meltdown began in 2008, the Fed created over .3 trillion in "digital money" to pump into the financial system and to prop up failing companies. This has devalued the currency even more.
All of this adds up to the U.S. Currency suffering a total net loss of about 99% in its value from 1910 to 2010. That means that food, commodities, and other goods, that typically cost back in 1910 have inflated enormously in price-until they cost about 0 by the end of 2010.
Ouch!
Let me also note that "value" itself never disappears. It only transfers to others. So what you have just read above is a brief overview of how bankers and governments plunder the wealth of its citizens covertly.
So the fact is this: "Price inflation" is a sign that somebody has crawled into your piggy-bank and is robbing you blind (over time).
Covering the Crime
Of course, government consumer Price Inflation (Cpi) statistics were reconfigured several times during the 1980s and into the 2000s. Politicians needed to hide this extreme purchasing power erosion from the public. Today, the Cpi data no longer includes food, energy, and other key commodities-though these are now rapidly rising in price. So "true price inflation" today is much higher than that which is revealed by even the most broad government lawful statistics. Using a more honest 1980 methodology, Shadowstats.com placed price inflation at about 8% per year toward the close of 2010. The government said it was about 2%.
Please keep in mind also that the loss in the value of the U.S. Dollar affects the True values of all things measured by that same currency. The effect that true inflation has upon the stock markets, real estate prices, and other "investments," is immense. Though relative "prices" might rise, when measured by a falling dollar, true values can admittedly be declining while habitancy are unaware.
For example, most habitancy think that the U.S. Housing bubble "popped" in 2008. However, when measured by real money (gold) the true values of houses admittedly began to decline back in 2001 and have plummeted 75% from their high.
The same fact is similar with regard to the stock markets. Most habitancy mark the "peak" of the Dow in October of 2007 when seeing at dollar-based pricing charts. When measured by gold, however, it admittedly peaked in 1999 and is now down 82% from that pinnacle.
In essence: Even your investment "returns" and home "values" are not what you think they are, when they are priced by a depreciating currency.
Real Money
No doubt, we have come to be accustomed to the convenience and simplicity of virtual currencies. With a quick swipe of our card, we can purchase the items we need or want. However, such convenience comes with a terrible price, as we have just seen.
Today, central bankers nearby the world can generate money with a few keystrokes upon their computers. Of course, when they do, most of those within that country's financial sector are enriched while the value of its currency decreases. When the true value of any currency declines, the true net worth and accepted of living of the majority of that country's citizens declines right along with it.
So all of history-and even the events reported within today's headlines-prove that "storing" the fruits of your labors in paper or digital currency is financial suicide, and not true savings. So now for the sure side of all this information...
The historical monies are still here, and they are already carefully money again within the global financial system. Central banks are now net buyers of gold, and many savvy countries (such as China. Brazil. And others) are fast spending their U.S. Dollars to turn them to real assets. Why? King Solomon expressed it this way, "The economical see danger and take refuge, but the easy keep going and pay the penalty" (Proverbs 27:12, Niv). The central bankers know that their Ponzi schemes are about to collapse, and they are getting ready for the inevitable. The governments of many countries identify this fact too, and they are establishment by running toward tangible assets (though they often do this quietly).
So we need to do the same.
Consider putting aside some of your paycheck and investment revenue into true storehouses of value-gold and silver bullion. That will transfer at least some of your labors into a tangible form that has a 5,000-year narrative of trustworthy wealth preservation. Those of you who already have a "store" of labors, such as withdrawal and savings accounts, should explore methods whereby you can transfer those depreciating assets into real physical gold and silver that is safely stored by reputable underground vaulting firms (i.e. Not within a bank, as they tend to "fractional reserve" their client holdings). I also recommend that you consult a tax accountant in your jurisdiction to make sure that you do this with minimal tax liability (e.g. Properly executed withdrawal list "rollovers" are often tax-free within the United States).
Taking such a path should retain your personal net worth and safe your family.
There is also an added advantage to such a strategy. When the financial systems fully collapse into hyperinflation soon-and this traps the unsuspecting public in its descending vortex-there will be relatively few habitancy holding true money. This means that all things tends to come to be a "buyers market" for those who have physical gold and silver.
For example, during the peak of hyperinflation in Weimar Germany in late 1923, it is said that an entire city block of market structure could be purchased with a particular ounce of gold. Assess that with the currency price of a loaf of bread at that time: 200 billion (with a "b") paper German marks-literally a wheelbarrow full. So can you fantasize how many habitancy you could also feed with that particular ounce of gold?
Please think about that. Tough times are admittedly coming, so decisions need to be made soon. Be proactive. Study, research, and then pray extensively about how to financially reposition yourself and your family. Be ready to buy, when the rest of the world is selling in desperation. Most of all, please be sure to set aside sufficient bullion to be able to help others too. There will be many habitancy who will need your benevolence and mercy.
In closing, please reconsider once again my opportunity statement: When it comes to savings-or storing the "fruit" of our labors for hereafter consumption-the form of "money" that you choose admittedly does matter. I trust that statement makes perfect sense now.
©2010-2011 by Rich Vermillion. This narrative may be redistributed globally under a Creative Commons 3.0, Attribution/Noncommercial/No Derivative Works, United States-based License. All other possession are reserved.
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